Road Environment Technology Co.Ltd(688156) (688156)
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Focus on high water content waste treatment and become a leading enterprise in the field of resource segmentation. Founded in 2006, the company explores the path of industrialization of river and lake sludge, municipal sludge, industrial sludge and other technologies through independent research and development of slurry dewatering and consolidation integrated technical system. Then it entered the stage of rapid replication and expansion, increased the strategic layout, and significantly expanded the scale of revenue. In 2014, the strategic transformation was carried out, focusing on the preparation of sludge treatment center and distiller's grains feed project, and the profitability was enhanced. At present, the company has a sound technological innovation R & D system, has a first-class qualification for professional contracting of environmental protection projects, Hubei enterprise technology center, Hubei Engineering Research Center and other R & D and innovation platforms, and has successively won many honorary awards, such as 1 national torch plan, 2 national key new products, 4 provincial scientific and technological progress awards, 10 Hubei scientific and technological achievements, 105 national patents and so on, It has also successfully operated projects such as Qianqing in Shaoxing, Fuquan in Shaoxing, Ouhai in Wenzhou, Lucheng in Wenzhou, Jintan in Changzhou, Qingshan in Wuhan, Xiangcheng in Xiangyang, etc. Become a leading enterprise in the industry with high popularity and influence in brands and segments. The company's total revenue in the first three quarters of 2021 was 236 million, with net profit of 49 million, up 56.94% over the same period last year. The operation of river and lake sludge treatment was gradually reduced by the epidemic situation. The company increased the market development and sales revenue of Baijiu lees in the field of resource utilization.
Innovation leads the shift of strategic focus, and the recycling of waste residue is expected to grow rapidly. Fresh Baijiu grains have high content of neutral detergent fiber, low energy value, low nutrient utilization efficiency, poor palatability, and no matter they will deteriorate and breed a large amount of aflatoxin, which will cause environmental pollution. If processed directly as rough feed, it will lead to livestock safety and ultimately lead to food safety. The company caters to the policy of "reducing resistance and banning resistance" and adopts the core technology of microbial solid-state fermentation of organic residue, which can effectively improve the utilization rate of distiller's grains, produce microbial fermented organic feed with nutrition, functionality and palatability, improve the intestinal microbial balance and improve the production capacity and immune capacity of animals. In addition, food waste can be turned into treasure through biotechnology, and high-quality protein can be obtained by breeding insects with biogas residue. On the one hand, food waste can be treated safely and environmentally, on the other hand, the cultured insects have high economic value, and the by-product insect sand is a high-quality organic fertilizer. The proportion of food waste in China has always been at a high level. With the national promotion of waste classification and the continuous introduction of corresponding policies, the market space in the field of food waste treatment will be opened one after another in the future. The recycling of organic waste residue has become a new blue ocean, with few large enterprises in subdivided industries. The company captures market opportunities and rapidly promotes the recycling business of organic waste residue. It has outstanding technological innovation ability, strong revenue growth of waste residue treatment business, and is expected to grasp the first mover advantage and expand the market share.
With the dual assistance of policy orientation and technical system, the environmental protection business is stable. River and lake sludge, engineering sludge, municipal sludge, organic sludge and industrial sludge are the fields that the state attaches importance to in environmental protection treatment. China has a large sludge stock, a late start in sludge treatment and a large market space. The state's investment in environmental treatment has increased year by year, with high market potential. The upstream and downstream of high water content waste involve a wide range of industries, and the market demand is stable. Over the years, R & D investment and technological innovation have formed a stable core technology architecture system, with obvious advantages in self-developed technology, forming a patent protection system. Efficient factory operation and highly reproducible innovation model promote the rapid expansion of the company's business.
Investment suggestion: it is estimated that the operating revenue of the company from 2021 to 2023 will be 350 million yuan, 533 million yuan and 737 million yuan respectively, with a year-on-year increase of 39.60%, 52.46% and 38.34% respectively, and the net profit attributable to the parent company will be 69 million yuan, 120 million yuan and 181 million yuan respectively, with a year-on-year increase of 44.08%, 74.57% and 51.19% respectively; The corresponding EPS were 0.75, 1.31 and 1.98, and PE were 26.42, 15.14 and 10.01 times, respectively. The company has been deeply engaged in the field of high water content waste treatment for many years and has a mature technical system. At the same time, it benefits from the national pollution control policy, feed "Prohibition" and aquaculture "reduction and restriction" policies. The sludge treatment market is stable and gradually enters the blue ocean of waste residue treatment. As a listed company with waste residue recycling scarce in the current market, it is expected to maintain a rapid growth trend. For the first time, give a "buy" rating.
Risk tips: the policy promotion is less than expected, the macro-economy is more than expected, the market competition is intensified, the project promotion progress is less than expected, and the industry calculation is based on certain assumptions and preconditions, so there is a risk of not meeting the expectations.
